Sale of football pitch to a developer

D

doddery

Guest
Our GAA Club have been approached by a developer who has bought land beside the club - we currently have a lease (45 years remaining) on the land from the farmer who sold the rest of his land to the developer. Developer now wants to us to exchange our interest in the 4 acre site and move it 500 yards down the road - whereby he will be give us a substantial lump sum +10acres - from the money received we have to build the pitches / clubhouse etc
My questions are as follows
- Stamp duty - would this be applicable in this instance and if so what rates are we talking - would it be payable on both the value of the land aswell as the lump sum payment.
- is there any way to avoid ?
- do the council charge levies on the contruction of community facilities -
- are there other tax implications here -
 
tax issues depend on the status of your GAA club (whether charitable status) and how the developer intends to structure this. Stamp Duty would have been your major concern but a change in the last Finance Act has changed that. VAT costs are also an issue but can be minimised.

You need to get some good tax advice
 
thanks for this advice - I had heard we needed to register for tax to allow us apply for certain tax exemptions - stamp duty and CGT specifically
 
You should ask your County Board secretary for advice on this issue before paying for advice elsewhere.
 
you need to be granted exemption under Section 235 of the Taxes Consolidation Act 1997. See here for list of currently approved bodies - [broken link removed]

see [broken link removed] for more detail, application form etc
 
indexing the value of money

Our club have been offered a sum of money ( say Eur 1m ) now to build a clubhouse in 5 years time ( part of a development deal ).They are offering to index the value of this money from now until whenever the planning etc comes through - they have suggested the CPI index - i am wondering if there are better tracking indices out there for this type of development - eg building costs indices ? - in 5 years time that Eur 1m may not build you a shed so the club want to ensure we get the best deal
 
Developer now offering a sum of money to us to build the clubhouse in 5 years time. They want to agree the cash deal now - they are happy to index link the agreed sum until such time as the development/planning comes through which could be as long as 5 years away - they are suggesting the CPI index - are there more specific indices out there that we should we look at - is there such a thing as a building cost index ? - is there a good webite to review this type of data - Thanks
 
Didn't JP McManus do a deal like this with [SIZE=-1]Staker Wallace GAA Club? Might be worth getting in touch with them to see how they worked it.
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craobh ciarain have also gone through this and a club in protmarnock (can't remeber name) - maybe their secretary could help
 
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